Hypercom slides as Q3 profits miss the mark

MarkCotton

NEW YORK (CBS.MW) -- Shares of Hypercom Corporation
hyc
fell 9.3 percent, to $6.35 after third quarter results fell short of analyst expectations as revenue growth slowed and gross margins declined. The provider of electronic payment solutions posted net income from continuing operations of $600,000 or a penny a share compared with $3 million, or 6 cents a share in the year-earlier period. The Thomson First Call average estimate was for earnings of 6 cents a share. Revenue edged up $63.2 million from $59.4 million. The company already warned in early October that its revenues would fall short of both its internal forecast and the consensus street estimate of the time of $69.5 million due to deferred shipement of several of its orders. Its gross margin fell to 39 percent from 40.6 percent. Looking ahead, the Phoeniz, Ariz. company said it expects income from continuing operations in the range of $8.1 million to $9.5 millionon revenue of $254 million to $260 million.

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